Time Inc. is cautious about contacting subscribers to its various titles via outbound telemarketing. Technically, the publisher is allowed to call readers on the federal do-not-call list, as it has an “established business relationship” with them. But Raquel A. Berman, assistant director of Time Consumer Marketing Inc., feels that anyone who has put themselves on the list has indicated that they do not wish to be contacted through this channel, and respects the spirit as well as the letter of the law.
This caution is one reason why Time’s list of usable phone numbers has shrunk. At one point, its 100 million subscriber master file contained 18 million numbers: Currently, this figure stands at 5 million.
Time’s publications do not use outbound telemarketing for prospecting purposes. Despite this, outbound telemarketing “remains a very viable option for us,” according to Berman. Consumers reached through telemarketing are more likely to make an impulse buy, and are often less price-sensitive. During the holiday season, a single telephone call can generate several gift subscription renewals.
Additionally, Berman has found that outbound TM is a wonderful way to promote a magazine launch within Time’s file of subscribers. And phone operators often collect valuable information to augment Time’s database, such as e-mail addresses.
This is, of course, a hazard that time will call a subscriber after the subscriber has asked to be put on a do-not-call list. While current law allows a 30-day exemption between the request and its enforcement, any call center Time uses is required to call a lead name within 20 days of receiving it, in order to minimize the risk of running afoul of the law.
Berman’s caution, in light of stringent Federal Trade Commission fines, is understandable. True, being overly cautious may cut into her return, but as she puts it, “Does the solution reduce the risk associated in the regulatory climate? How many records do you believe are at risk and multiply that by $11,000 [the current FTC fine for violations of the do-not call list]?”
The final part of the telemarketing equation for Time Inc. is monitoring and auditing its efforts. The company learned to terminate any call made to a male Sports Illustrated subscriber around the time of its swimsuit issue if a woman answered the phone. Why? More often than not, that issue was foremost in the woman’s mind, and the telemarketer’s request for renewal would be met with a terse “he doesn’t need it.”
The voluntary restrictions on its telemarketing activities come on top of the loss of the sweepstakes device, and both have cut into the publisher’s new business operations. In recent years, Time Inc. has become more reliant on direct mail and other direct to publisher channels.
It has also focused more heavily on its partnership programs. A deal it inked with credit card issuer MBNA give Time Inc.’s Sports Illustrated magazine a presence at many major sports arenas. When consumers apply for an MBNA credit card at a kiosk, they are offered a subscription to Sports Illustrated, which starts when their credit card is approved.
By linking these activities to the credit card, Time Inc. is basically guaranteed that these new subscribers come on as 100% credit card paid, and most are put right into an autorenewal program.
Berman presented her experiences with Time Inc. at the National Center for Database Marketing conference in San Francisco. The conference ended Wednesday.
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